Buying a house 2012

killers1

Verte11 wrote: »

Is the rate the variable at 3.75 or the APR 3.8?

It's the 3.75% interest rate... works out @ €112.50pm...

Verte11

Great, thanks a million(again).

Learpholl

Hi Killers,

I dont know if you remember but we discussed repayment dates a while back and you mentioned how the first payment would always be at least a month after you've drawn down on the date selected in the direct debit mandate. I got a letter from the bank stating that the first repayment would be due on the 13th of April since I drew down on the 13th of March. However, when filling out the Direct Debit mandate, I chose the 1st of every month as my repayment date.

Now the bank are telling me that the repayment will be on the 13th and if I want to change it, I will need a written request to ask for it to be changed to the 1st. Do you know is this standard procedure? As now I will need to pay a full mortgage repayment on the 13th and again on the 1st which seems a little odd to me given our previous conversation. No bother doing it just a little curious really.

Thanks for your help before as well!

killers1

Learpholl wrote: »

Hi Killers,

I dont know if you remember but we discussed repayment dates a while back and you mentioned how the first payment would always be at least a month after you've drawn down on the date selected in the direct debit mandate. I got a letter from the bank stating that the first repayment would be due on the 13th of April since I drew down on the 13th of March. However, when filling out the Direct Debit mandate, I chose the 1st of every month as my repayment date.

Now the bank are telling me that the repayment will be on the 13th and if I want to change it, I will need a written request to ask for it to be changed to the 1st. Do you know is this standard procedure? As now I will need to pay a full mortgage repayment on the 13th and again on the 1st which seems a little odd to me given our previous conversation. No bother doing it just a little curious really.

Thanks for your help before as well!

Hi Learpholl,

Yes, I remember! Looks like they ignored your instruction on the DD mandate for the repayments to be taken on the 1st of each month so the repayment falls due 1 month from date of drawdown. Seeing as you drew down on the 13th march they would have had enough time to set up DD and the first repayment should have come out on the 1st April. As it stands you can either Lear it at the 13th of the month or put in writing to be 1st of the month from may onwards. Its really makes no difference as your loan is to be repaid over X no of payments, you'll just have had the first 2 fairly close together...

blueturnip

Quick update from me...

Got our provisional letter of approval today and it is valid for 3 months. We sent it by post and it was delivered to them 23rd March. So it took 12 days to get back to us.

Now to find the right house!!

nemo32

blueturnip wrote: »

Quick update from me...

Got our provisional letter of approval today and it is valid for 3 months. We sent it by post and it was delivered to them 23rd March. So it took 12 days to get back to us.

Now to find the right house!!

Well done and good luck on the house search

folan

blueturnip wrote: »

Quick update from me...

Got our provisional letter of approval today and it is valid for 3 months. We sent it by post and it was delivered to them 23rd March. So it took 12 days to get back to us.

Now to find the right house!!

congrats. I just got mine during the week, took 15 working days.

its a nice feeling after all the savings etc.

folan

killers1 wrote: »

Have a read of this before you go...,

http://www.propertytoolbox.co.nz/the_house_hunt.php#viewing

was a great resource.

Was definatly not impressed by the houses. and to think that they were going for twice as much in the boom!

killers1

folan wrote: »

was a great resource.

Was definatly not impressed by the houses. and to think that they were going for twice as much in the boom!

Glad you found it useful. Take your time to hold out for the right house at the right price!!

chris_ie

May aswell stick a wee post in here. We just completed the purchase of our home. Nearly 5 years looking and finally got here! Happy with the deal we got aswell. Although we were due to be in the house at the end of January but just got in at the end of March. So took a while longer than expected.

L777

Verte11 wrote: »

Hi there,
I thought I'd set up a thread so that anyone who is buying a house this year or has done so recently enough could share information.
I'll start it off with a question. Once my mortgage goes through I'll be applying for interest relief as I'm a first time buyer. Has anyone gone through the process of doing this online? You can't apply until after your first mortgage payment has gone through. Just wondering what info they need and if there's anything I could get sorted now in advance.
Even if you can't answer my question just let me know if you're interested in joining this little group of 2012 buyers.

Hi,

Thank you for setting this up!!!!
I'm totally new to this (just joined today) but I've often looked up for advice! I'm excited/nervous/confused/lost!!! :eek:

We were going to build a house (spring 2013) - got planning permission granted just before christmas (it was a long process) but we got a quote to build and it was very expensive - apparently materials etc are very expensive! anyway long story short we decided to have a browse and think about buying but we unexpectately found our dream home and its reeeeeeeeeally close to home (where we were going to build).

so I need advice..... we are going to go for a mortgage but I dont know if wer gonna get it or not & if there is anything we could do to help the application it would reeeeealllly help!!!

we are going joint application. both in full time permanent employment. earn basic 63512 per year (joint) + 12000 extras. we have 8000 savings and are getting gifted inheritance of 13000 - paying 700 rent for the past 2 years, have a cu car loan 120 pm (in advance 2300) and a loan (which i took out last summer to clear and cancel my credit card) 186.97pm (also in advance)??????

any advice would be greatly appreciated!!!!!!! thanks in advance!!!!

L777

Hi,

Thank you for setting this up!!!!
I'm totally new to this (just joined today) but I've often looked up for advice! I'm excited/nervous/confused/lost!!!

We were going to build a house (spring 2013) - got planning permission granted just before christmas (it was a long process) but we got a quote to build and it was very expensive - apparently materials etc are very expensive! anyway long story short we decided to have a browse and think about buying but we unexpectately found our dream home and its reeeeeeeeeally close to home (where we were going to build).

so I need advice..... we are going to go for a mortgage but I dont know if wer gonna get it or not & if there is anything we could do to help the application it would reeeeealllly help!!!

we are going joint application. both in full time permanent employment. earn basic 63512 per year (joint) + 12000 extras. we have 8000 savings and are getting gifted inheritance of 13000 - paying 700 rent for the past 2 years, have a cu car loan 120 pm (in advance 2300) and a loan (which i took out last summer to clear and cancel my credit card) 186.97pm (also in advance)??????

any advice would be greatly appreciated!!!!!!! thanks in advance!!!!

blueturnip

folan wrote: »

congrats. I just got mine during the week, took 15 working days.

its a nice feeling after all the savings etc.

Yay! It certainly does feel good, although I don't think it has entirely sunk in yet! There was always that thought in the back of our minds that they might say No.

We have our eye on a place, now to arrange a second viewing.

Verte11

Hey Chris_ie. congrats. 5 years is a long time you must be well happy now.

aviendha

Just had offer accepted by vendor based on preliminary offer letter from Bank last January - just getting updated offer letter so hopefully no additional conditions since then .. we were approved for an amount higher than what we are now requesting, so hopefully shouldn't cause any problems..
still..nervewracking while waiting...

killers1

aviendha wrote: »

Just had offer accepted by vendor based on preliminary offer letter from Bank last January - just getting updated offer letter so hopefully no additional conditions since then .. we were approved for an amount higher than what we are now requesting, so hopefully shouldn't cause any problems..
still..nervewracking while waiting...

There's been no changes in lending policies since Jan that will negatively effect your application and given you need a lessor amount than you were approved for you'll be fine...

aviendha

Hopefully should be ok.. it's just so topsy turvy anecdotally that until we get the signed/sealed/delivered, we'll be on edge!

Also hoping to piggyback on simonopendoor.ie to get an architects ideas to redesign the interior - it's a 70s bungalow with a weird open plan/ breeze block interior with split levels - anyone have any other suggestions on where to get interior space plan ideas, I'm a boring accountant - too square for these creative ideas required!!

ted1

killers1 wrote: »

There's been no changes in lending policies since Jan that will negatively effect your application and given you need a lessor amount than you were approved for you'll be fine...

when was the last change? I had an offer accpeted, had mortgage approvment that expired on Feb 15.

looking for a mortgage of approx 85% of the original mortgage offer with AIB.

it should be fine but there been a bit slow

killers1

ted1 wrote: »

when was the last change? I had an offer accpeted, had mortgage approvment that expired on Feb 15.

looking for a mortgage of approx 85% of the original mortgage offer with AIB.

it should be fine but there been a bit slow

You'll be fine, nothing really changed since you were approved in November apart from a recent ltv change on loans over €400k and a new 2012 income calc taking into account budget changes. AIB are quite slow at the minute and sometimes when an approval expires they actually put it through the whole underwriting process again in terms of generating a different account no. so can take anything up to 3 weeks (particularly with all the Bank Holidays)...

Bigcheeze

What's the ltv change?

killers1

Bigcheeze wrote: »

What's the ltv change?

Max LTV for loans over €400k has reduced to 85%

Iamhere

hello all,

Just looking for soon advice or info from anyone who has been in a similar situation as we are currently in. We have agreed a price on a house we want to purchase, the amount is 107,000, in February we were approved in principle with AIB for 92% of 150,000. The problem is that the previous owners handed the keys back to their bank but before they did this the look the kitchen out of the house, everything bar the tiles and the sockets!! AIB will not approve a mortgage for this house unless a valuer says there is no need for a final valuation, i have spoke to some valuers on their panel and it seems that the final decision may come down to how much of a deposit we put towards the house, we had intended on putting 10%. Any thoughts would be a great help as we are 1st time buyers so its all very new to us.

nemo32

Iamhere wrote: »

hello all,

Just looking for soon advice or info from anyone who has been in a similar situation as we are currently in. We have agreed a price on a house we want to purchase, the amount is 107,000, in February we were approved in principle with AIB for 92% of 150,000. The problem is that the previous owners handed the keys back to their bank but before they did this the look the kitchen out of the house, everything bar the tiles and the sockets!! AIB will not approve a mortgage for this house unless a valuer says there is no need for a final valuation, i have spoke to some valuers on their panel and it seems that the final decision may come down to how much of a deposit we put towards the house, we had intended on putting 10%. Any thoughts would be a great help as we are 1st time buyers so its all very new to us.

Hi,
So have you been AIP for the amount? We had to get our valuation done before the letter of offer is given. Is this what you mean?

Iamhere

Sorry my mistake just had another look at the letter and it was sanctioned in our names in Feb...

nemo32

Iamhere wrote: »

Sorry my mistake just had another look at the letter and it was sanctioned in our names in Feb...

Okay so your good to go then. So you just need to get your valuation done and send it back into them and they will issue the Letter of Offer to your solicitor. Shouldn't be a problem with the kitchen situation. We were in the same boat and it doesn't really devalue your house as far as I know, But obviously it depends on how much you paid for the house aswell Good Luck

killers1

Iamhere wrote: »

hello all,

Just looking for soon advice or info from anyone who has been in a similar situation as we are currently in. We have agreed a price on a house we want to purchase, the amount is 107,000, in February we were approved in principle with AIB for 92% of 150,000. The problem is that the previous owners handed the keys back to their bank but before they did this the look the kitchen out of the house, everything bar the tiles and the sockets!! AIB will not approve a mortgage for this house unless a valuer says there is no need for a final valuation, i have spoke to some valuers on their panel and it seems that the final decision may come down to how much of a deposit we put towards the house, we had intended on putting 10%. Any thoughts would be a great help as we are 1st time buyers so its all very new to us.

Has one of AIB's Panel Valuers actually carried out the inspection yet? If so, have they put on the report that a Final Val is required? Have they said that the property is not suitable security for the Bank in it's current state? Do you have sufficient savings to carry out whatever work is necessary?

Iamhere

No valuation has been done yet but it should be done this week, we do have the money to put the kitchen and would pay for it out of our savings... I am just worried that they will require a final valuation if that is the case its back to square one...

killers1

Iamhere wrote: »

No valuation has been done yet but it should be done this week, we do have the money to put the kitchen and would pay for it out of our savings... I am just worried that they will require a final valuation if that is the case its back to square one...

I don't see how you are back to square one? I'd suggest getting the valuation done and then reverting here with the outcome...You have no issue here that can't be overcome...

MOVER2012

Hi All,

I wonder if anyone on here could give me some advice.

Myself and my other half are thinking about buying a house this year.
We both have good jobs with combined earnings of approx €100K p.a and total savings of approx €90K.
We are looking at buying a house for approx €250K, so would be asking for a mortgage for approx €225K keeping alot of our savings.

Now things get a bit tricky.
We both work in Dublin but are thinking of buying our house near both our parents in Galway, as we are expecting our first child later this year.
So our plan is to move just before the baby arrives.
On the job front, I could easily keep my job in Dublin, and work from home half the week, commute to Dublin the rest, until I pick up another job closer to home, but my outer half works in the public service so once her maternity leave is finished may find it difficult to get another job locally.


So basically what I'm asking is when applying for a mortgage should we be upfront from day one?
And if we are upfront what are our chances of being approved for a mortgage?

Thanks alot,
Mover2012

killers1

MOVER2012 wrote: »

Hi All,

I wonder if anyone on here could give me some advice.

Myself and my other half are thinking about buying a house this year.
We both have good jobs with combined earnings of approx €100K p.a and total savings of approx €90K.
We are looking at buying a house for approx €250K, so would be asking for a mortgage for approx €225K keeping alot of our savings.

Now things get a bit tricky.
We both work in Dublin but are thinking of buying our house near both our parents in Galway, as we are expecting our first child later this year.
So our plan is to move just before the baby arrives.
On the job front, I could easily keep my job in Dublin, and work from home half the week, commute to Dublin the rest, until I pick up another job closer to home, but my outer half works in the public service so once her maternity leave is finished may find it difficult to get another job locally.


So basically what I'm asking is when applying for a mortgage should we be upfront from day one?
And if we are upfront what are our chances of being approved for a mortgage?

Thanks alot,
Mover2012

It really depends on how our combined income of €100k is broken down? Is it €50k each? If you are looking to buy a property on the other side of the country to where you work banks will want to know the rationale behind it, whether it's a commutable distance and may look for some confirmation from your employer that you do have the option to work from home a few days a week....Also, there is a world of difference between a joint mortgage application with 2 incomes versus a sole income, 3 person family application...

MOVER2012

killers1 wrote: »

It really depends on how our combined income of €100k is broken down? Is it €50k each? If you are looking to buy a property on the other side of the country to where you work banks will want to know the rationale behind it, whether it's a commutable distance and may look for some confirmation from your employer that you do have the option to work from home a few days a week....Also, there is a world of difference between a joint mortgage application with 2 incomes versus a sole income, 3 person family application...

Thanks for your reply Killers.
Yes our salaries work out about €50K each.
We'd be thinking of buying around the Athenry/Loughrea area so the commute wouldn't be too bad, if I could work from home half the week.
It also wouldn't be a problem getting a letter from work as I'm pretty sure they don't want to lose me!!:D

So do you think the banks would automatically put us into the bracket of a sole income, 3 person family, even though my wife would be getting full pay while on maternity leave for the best part of 8 months?
Also the banks don't know that my wife isn't going to return to work after maternity leave. (She work's in West Dublin so her commute would be less than mine)
Would they just assume she isn't?

mari2222

Your wife will not be eligible for maternity pay unless she returns - even though she could return and then give notice - perhaps this is what you plan. As far as employers and bank are concerned, she is returning to work.

MOVER2012

mari2222 wrote: »

Your wife will not be eligible for maternity pay unless she returns - even though she could return and then give notice - perhaps this is what you plan. As far as employers and bank are concerned, she is returning to work.

Thanks for that mari,
Yes our plan is for her to give notice when she is due to return.
So you don't think we'll have any problem getting a mortgage.
That's great.

killers1

MOVER2012 wrote: »

Thanks for your reply Killers.
Yes our salaries work out about €50K each.
We'd be thinking of buying around the Athenry/Loughrea area so the commute wouldn't be too bad, if I could work from home half the week.
It also wouldn't be a problem getting a letter from work as I'm pretty sure they don't want to lose me!!:D

So do you think the banks would automatically put us into the bracket of a sole income, 3 person family, even though my wife would be getting full pay while on maternity leave for the best part of 8 months?
Also the banks don't know that my wife isn't going to return to work after maternity leave. (She work's in West Dublin so her commute would be less than mine)
Would they just assume she isn't?

If you tell the bank that your wife is going to be looking for a new job after baby is born they won't factor her current income into the equation. A €50k sole income will be sufficient to gain approval for €225k for a 3 person family on some banks calculators but not others. Also, any repayment capacity that you can currently prove will be based on 2 incomes and the bank's may take the view that you haven't proven how you would cope on 1 income (50% of current level) and have an extra mouth to feed. You're in a strong position now with €100k combined incomes and no kids V 1 income, 50% of current levels and the expense of a child. If you take the approach that you both will commute to work in Dublin the bank will make a decision based on how reasonable/feasible that is for 2 parents of a small child to commute 3 hrs per day to work...

nemo32

Hi All,

We have an appointment with the solicitor on Monday to sign the letter of offer and contracts and he mentioned bringing a 10% deposit but we are approved for 92% and we have paid 5k to the EA already. Anyone know what he means by 10%?

Thanks

blueturnip

Hi All,

Another question from me!

How do you put an offer on a house? Do you just ring the estate agent? Or do you have to write a letter etc?

Thanks!

killers1

nemo32 wrote: »

Hi All,

We have an appointment with the solicitor on Monday to sign the letter of offer and contracts and he mentioned bringing a 10% deposit but we are approved for 92% and we have paid 5k to the EA already. Anyone know what he means by 10%?

Thanks

Ring your solicitor tomorrow and tell them that you are getting a 92% mortgage. Ask them to check with the vendors solicitor whether they will accept an 8% contract deposit instead of 10%. In 999 out of 1000 cases this won't be a problem. You then bring a cheque for 8% of the purchase price less the €5k booking deposit you've paid already payable to the vendors solicitor when you go in to sign on Monday.

killers1

blueturnip wrote: »

Hi All,

Another question from me!

How do you put an offer on a house? Do you just ring the estate agent? Or do you have to write a letter etc?

Thanks!

You just ring the estate agent... Best of luck!:)

shangri la

I am in the process of getting the MIP. You need ALL the bits and pieces! I think I have printed out close to a full tree trying to get it together

I have:
Salary Certs
Payslips
CC Statements
Savings Accounts Statments
Proof of EU Citizenship
Proof of Rental payment

No bank statements etc as we are going with AIB where all our current accounts etc are.

And I am sure I am missing something...

What else is required to get a MIP?

How far backdated do the statements need to be?

In your initial list you mentioned statements and separately mentioned bank statements. What statements are you referring to?

Do I have to give statements from every bank/CU and credit card account I have?

Do I have to list every share and investment I own?

shangri la

Verte11 wrote: »

Heya. It was highlighted on Valuation not structural survey but I had to show the bank both as house over 100 years old.

i would have thought an asbestos roof should be listed on a structural survey?

shangri la

killers1 wrote: »

Thanks, I am indeed. People often debate should they go directly to the Bank's or use a broker... I'd like to think that I've answered that question. It's better to have someone fighting your corner who knows the process inside out when it comes to negotiating with the banks.

What exactly does a mortgage broker do when someone walks into your office and says they want a mortgage?

Do you look at lending institutions whose headquarters would be outside the ROI?

In the majority of cases where the purchase goes smoothly what would be a typical brokers fees?

In the majority of cases will a broker just make a purchasers life easier dealing with the banks/surveyors or can they regularly show a saving to the purchaser?

nemo32

killers1 wrote: »

Ring your solicitor tomorrow and tell them that you are getting a 92% mortgage. Ask them to check with the vendors solicitor whether they will accept an 8% contract deposit instead of 10%. In 999 out of 1000 cases this won't be a problem. You then bring a cheque for 8% of the purchase price less the €5k booking deposit you've paid already payable to the vendors solicitor when you go in to sign on Monday.

Thanks Killers,

So it's the vendors solicitor that look for the 10% that makes sense cause he did say there shouldn't be a problem with accpeting 8% so wasnt sure what he meant. All I kept thinking was who is going to take my extra 2%... lol

killers1

shangri la wrote: »

What exactly does a mortgage broker do when someone walks into your office and says they want a mortgage?

Do you look at lending institutions whose headquarters would be outside the ROI?

In the majority of cases where the purchase goes smoothly what would be a typical brokers fees?

In the majority of cases will a broker just make a purchasers life easier dealing with the banks/surveyors or can they regularly show a saving to the purchaser?

A broker should be able to tell you after a 10 minute discussion about what you are looking to do and your financial circumstances what your chances of approval are. They'll be able to advise as to which banks will offer the most finance, which offer the cheapest rates etc. You'll then get a list of documentation needed to put the application together to submit to the lenders. The broker will be able to see from your details any areas in your finances that may cause concern to an Underwriter and present your application to the lenders in it's best light to enhance your chances of approval.

A broker can deal with any lender they hold an agency from. Some brokers charge anything from €0 to €1,000. There is no difference in a rate offered by a bank either directly to a client or via a broker, the banks advertised rates are the rates on offer. The broker can offer a real saving in terms of the insurance products V the banks offerings. The brokers job is to obtain approval for the amount needed at the cheapest possible rate & make life easier for the borrower in any way possible...

killers1

nemo32 wrote: »

Thanks Killers,

So it's the vendors solicitor that look for the 10% that makes sense cause he did say there shouldn't be a problem with accpeting 8% so wasnt sure what he meant. All I kept thinking was who is going to take my extra 2%... lol

lol! Don't worry, they always accept the 8% deposit where you are borrowing 92%. If for any reason they didn't, basically you would pay 10% on signing the contracts and then when the mortgage issues (for 92%), the remaining 90% is paid over to complete the purchase and you get your 2% back from the mortgage monies...

shangri la

@killers1

Would you recommend asking a broker for a list of lending institutions which they have an agency with to get a better range of mortgage options before hiring them?

killers1

shangri la wrote: »

@killers1

Would you recommend asking a broker for a list of lending institutions which they have an agency with to get a better range of mortgage options before hiring them?

Absolutely! & insurance companies!

blueturnip

shangri la wrote: »

What else is required to get a MIP?

How far backdated do the statements need to be?

In your initial list you mentioned statements and separately mentioned bank statements. What statements are you referring to?

Do I have to give statements from every bank/CU and credit card account I have?

Do I have to list every share and investment I own?

For anything outside my bank I needed 6 months. So for the savings account and our joint credit card it was 6 months.

I never gave them a statement from my CU, I have feck all in there!

I would imagine they would want all your CC statements but someone may correct me.

For the statements I meant, Credit cards ones and savings accounts as these are not with my normal bank (i.e. where my current account is). I also have savings and CC accounts with my bank and I didn't need to provide these.

Flancrest

HI
Myself ad the other half are buying this year(FTB)
We have nearly everything in place and are meeting with a mortgage adviser on Tuesday.
Just wondering how long it usually takes to get AIP after getting info to adviser.

killers1

Flancrest wrote: »

HI
Myself ad the other half are buying this year(FTB)
We have nearly everything in place and are meeting with a mortgage adviser on Tuesday.
Just wondering how long it usually takes to get AIP after getting info to adviser.

Depends on the bank but usually around 10 working days or so...

Felexicon

Hi

We have our deposit saved for a mortgage.

Just wondering do we have to have the money in place for additional fees (solicitor,stamp duty etc.) before applying for AIP.

Also what is the current situation for stamp duty for FTB.


Also this is a really helpful thread thanks everyone for some solid advice.